8-KEarnings & ResultsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Apr 26, 2007)

Filed April 26, 2007For Securities:EPDEPDU

Summary

This 8-K filing from Enterprise Products Partners L.P. (EPD), dated April 26, 2007, announces the company's financial results for the first quarter ended March 31, 2007, and 2006. The report primarily serves to attach the earnings press release and inform investors about the webcast conference call discussing these results. Investors should note the company's use of non-GAAP financial measures, including gross operating margin, distributable cash flow, and EBITDA, which are detailed with their respective definitions and reconciliations to GAAP. These measures are emphasized as key performance indicators used by management and are important for investors to understand the company's operational profitability and cash flow generation capabilities. The filing indicates that the press release (Exhibit 99.1) contains the detailed financial results. While the specific figures are not provided in the 8-K text itself, the document highlights the importance of these non-GAAP metrics for assessing EPD's financial health and its ability to generate cash for distributions to unitholders. The company also explains its strategic use of equity method investments to achieve economies of scale and align interests with partners, incorporating earnings from these affiliates into its gross operating margin calculations.

Key Highlights

  • 1EPD filed an 8-K on April 26, 2007, to report its financial results for the first quarter ended March 31, 2007, and 2006.
  • 2The filing includes a press release (Exhibit 99.1) with detailed financial results and information about a webcast conference call.
  • 3The company utilizes and emphasizes non-GAAP financial measures: gross operating margin, distributable cash flow, and EBITDA.
  • 4Gross operating margin is presented as a key measure of core operational profitability, used by management for capital allocation.
  • 5Distributable cash flow is highlighted as a significant liquidity metric for comparing cash generated to planned distributions and assessing cash return on investment for limited partners.
  • 6EBITDA is provided as a supplemental measure to assess asset performance without regard to financing and capital structure.
  • 7The report explains the strategic importance of equity method investments and their inclusion in segment gross operating margin.

Frequently Asked Questions

The primary purpose of this 8-K filing is to officially announce and provide access to Enterprise Products Partners L.P.'s financial results for the first quarter ended March 31, 2007, and 2006, by attaching their earnings press release as an exhibit. It also informs investors about the availability of a webcast conference call to discuss these results.

The key non-GAAP measures are Gross Operating Margin, Distributable Cash Flow, and EBITDA. Gross Operating Margin measures core profitability. Distributable Cash Flow is crucial for assessing the company's ability to generate cash to cover distributions to unitholders and indicates the cash return on investment. EBITDA helps evaluate asset performance and debt service capacity independent of financing structure. Management uses these metrics for internal reporting and decision-making, and they are important for investors to understand the company's operational performance and cash generation.

Enterprise Products Partners L.P. includes earnings from its equity method unconsolidated affiliates in its measurement of segment gross operating margin. The company views these investments as a vital component of its business strategy to achieve economies of scale and align interests with customers and partners, thereby enhancing operational efficiency and managing business risk.

The detailed financial results for the first quarter ended March 31, 2007, and 2006, are located in the press release attached as Exhibit 99.1 to this 8-K filing. The webcast conference call discussing these results will also be available for replay on Enterprise Products Partners L.P.'s website (www.epplp.com) for 90 days.